Mail Bag | Compensation

Letter #3 – I was wondering if you could provide insight into how Granger handles compensation issues (i.e. salary levels, raises etc). –from Mark in Edwardsville, Illinois

Mark, I’m glad you sent your message, because it’s created a great deal of conversation on my blog the last few days. As promised, this is how much I make. All you have to do is follow this simple formula to calculate my salary or anyone else’s:

  1. start with your metric weight
  2. multiple that by the number of suits that you own
  3. add the zip code where you live
  4. subtract the number of career home runs Duane Kuiper had with the Cleveland Indians
  5. divide by the square root of your mother’s age
  6. do something with "pi"
  7. then ask your boss how much he’s going to pay you

You didn’t really think I was going to tell you how much I make, did you?

Let me try to give you some guidance, though, based on how we try to establish wage levels at Granger. When we’re setting salaries, we primarily consider performance and ministry/leadership capacity. Additionally, we take into consideration responses to questions like these:

  • What do "normal" people in our area make for similar roles? (We can’t compete with marketplace employers, but it helps us get a general idea of what similar positions pay.)
  • What do similar positions pay within our organization?
  • What would it cost to replace this person? How easy would they be to replace?
  • What do other churches our size pay? (This question obviously applies more to pastor and director-type roles where we may be competing with other churches to keep our talent.)
  • What can we afford? (It’s pretty safe to say we’d typically love to pay our staff more; however, we need to balance that with being good stewards of the resources God has provided for ministry.)

The best place I’ve found for external wage comparisons with other churches is the National Association of Church Business Administration. For a small annual fee, you can use their online compensation data to analyze wage levels by position  based on factors like budget size, attendance, denomination, region, etc. Of course, this is no exact science. A position, even with the same title, in one church, may look very different in another church. That’s why external comparisons can’t be the only factor you consider.

For more insights on how we determine compensation levels at Granger, you may check out chapter 61 in Simply Strategic Stuff, "If you can’t pay your employees well, you have too many employees."

And, if all else fails, just follow the formula I outlined above. It really works!

8 Responses to “Mail Bag | Compensation”

  1. Pastor Bob May 27, 2005 at 3:44 pm #

    Was this just an attempt to get more hits?

  2. Tony Morgan May 27, 2005 at 4:39 pm #

    Maybe. Getting “hits” is a problem that Duane Kuiper and I have apparently shared. :-)

  3. Jim Walton May 27, 2005 at 5:22 pm #

    The only problem now is that you need to top this one to continue bringing us back. You went for the big kahuna up front, I’m not sure where you can go from here.

    Hindsight is 20/20, looking back, it might have been advisable to start smaller, maybe something like “I’m thinking of telling you what kind of car I drive…”

    I’m sure you will bounce back strong though. :-)

    Great post, by the way, good info. Thanks!

  4. Johnny May 27, 2005 at 10:03 pm #

    You might have lost some street cred with this one!

  5. Tony Morgan May 28, 2005 at 12:01 am #

    Yowsers! The crowd is turning fast on me. Ok, I’ll fall on my sword. I apologize for leading you on. I promise. I’ll make it up to you in the coming days. Now, can you show me some love?

  6. Jim Walton May 28, 2005 at 12:38 am #

    Hey man, there’s plenty of love flowing here, manly, beat your chest kind of love, of course.

    You did a good job creating buzz and that’s always a good thing.

    Anyone who seriously thought you were going to give up your salary out here in this public forum has a lot to learn. (much better idea to just email me the figure directly, just between you and me :-) )

  7. Brad Hinman May 28, 2005 at 3:54 pm #

    No guts! I should have known it was all hype. Although it’s still good info. Thanks for the post.

    Anyone who seriously thinks you are going to email out your salary has a lot to learn (Jim, let me know what he says).

  8. Kem Meyer May 31, 2005 at 11:11 pm #

    I applaude you for steppin out… you took a risk. A master blogger.